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Oil Prices Rise As Temps Fall
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| Kelly Hertz/P&D Although recent temperatures haven’t been particularly conducive to melting, these icicles formed off a rooftop in downtown Yankton Sunday, with some water dripping. Cold conditions are expected to dominate the region through the week. |
Cold Wave Spreads Across Nation, Increases Demand For Fuel
By Lisa Hare
lisa.hare@yankton.net
By Lisa Hare
lisa.hare@yankton.net
The New Year blew in on an Arctic wind that’s predicted to keep much of the U.S. in a deep freeze, with record-breaking temperatures reaching as far south as Florida and Georgia.
And as temperatures tumble, energy prices will likely rise.
“A major Arctic wave is set to hit the country now and could last into February,” said AccuWeather.com senior meteorologist Jim Andrews.
For the first time in four weeks, oil prices topped $79 a barrel last week as the extended cold snap in the U.S. triggered a year-end rally in energy futures.
Futures contracts for oil, natural gas and heating oil have all become more expensive as snowstorms blanketed parts of the country. Also, a sharp drop in supplies of crude and other fuels surprised traders.
According to the latest data from the Energy Information Administration (EIA), natural gas prices jumped in early December to the highest levels since January, and heating oil prices climbed during the middle of the month.
Still, the winter chill hasn’t yet boosted energy demand above last year’s levels. The U.S. is consuming less petroleum than it did at the same time last year, when oil and gas prices were cheaper.
But that may change soon.
EIA reports indicate American refiners have cut back on oil imports, which has reduced supplies and increased prices. But analyst Andrew Lipow said that oil prices also are rising as China and India expand their petroleum imports.
“That oil is finding a buyer somewhere,” Lipow said.
AccuWeather.com reports are predicting the cold wave to intensify through the week, supporting crude oil price increases.
With most major U.S. cities being affected, millions will be forced to heat their homes more and for longer periods of time this winter season. During the coldest periods, forecasts indicate U.S. metropolitan areas in the Northeast, and as far south as Atlanta will see daytime highs in the 20s. More frigid temperatures are expected, with up to 4 inches of snow forecast for New England, and up to 7 inches of snow along the lower Great Lakes.
Other areas in the Deep South could see record low temperatures this week, but experts say the Florida citrus crop should remain unaffected from the temperatures.
“The core of the cold should not make it down the Florida peninsula,” said AccuWeather meteorologist Dale Mohler. “The citrus crop should dodge the bullet, but there is potential for a little frost.”
The cold pattern is not expected to break anytime soon, and meteorologists are forecasting bitter cold temperatures for the Plains with single-digit highs and negative double-digit lows for the reminder of the week.
Andrews said the weather pattern around Greenland is responsible for the cold burst, encompassing a massive portion of the United States. It will also continue to affect Europe.
As for gasoline prices, when global oil prices are rising, gas prices are expected to climb as well.
Yankton saw some evidence of that over the New Year’s weekend, with pump prices at some locations rising a dime or more.
lisa.hare@yankton.net
The New Year blew in on an Arctic wind that’s predicted to keep much of the U.S. in a deep freeze, with record-breaking temperatures reaching as far south as Florida and Georgia.
And as temperatures tumble, energy prices will likely rise.
“A major Arctic wave is set to hit the country now and could last into February,” said AccuWeather.com senior meteorologist Jim Andrews.
For the first time in four weeks, oil prices topped $79 a barrel last week as the extended cold snap in the U.S. triggered a year-end rally in energy futures.
Futures contracts for oil, natural gas and heating oil have all become more expensive as snowstorms blanketed parts of the country. Also, a sharp drop in supplies of crude and other fuels surprised traders.
According to the latest data from the Energy Information Administration (EIA), natural gas prices jumped in early December to the highest levels since January, and heating oil prices climbed during the middle of the month.
Still, the winter chill hasn’t yet boosted energy demand above last year’s levels. The U.S. is consuming less petroleum than it did at the same time last year, when oil and gas prices were cheaper.
But that may change soon.
EIA reports indicate American refiners have cut back on oil imports, which has reduced supplies and increased prices. But analyst Andrew Lipow said that oil prices also are rising as China and India expand their petroleum imports.
“That oil is finding a buyer somewhere,” Lipow said.
AccuWeather.com reports are predicting the cold wave to intensify through the week, supporting crude oil price increases.
With most major U.S. cities being affected, millions will be forced to heat their homes more and for longer periods of time this winter season. During the coldest periods, forecasts indicate U.S. metropolitan areas in the Northeast, and as far south as Atlanta will see daytime highs in the 20s. More frigid temperatures are expected, with up to 4 inches of snow forecast for New England, and up to 7 inches of snow along the lower Great Lakes.
Other areas in the Deep South could see record low temperatures this week, but experts say the Florida citrus crop should remain unaffected from the temperatures.
“The core of the cold should not make it down the Florida peninsula,” said AccuWeather meteorologist Dale Mohler. “The citrus crop should dodge the bullet, but there is potential for a little frost.”
The cold pattern is not expected to break anytime soon, and meteorologists are forecasting bitter cold temperatures for the Plains with single-digit highs and negative double-digit lows for the reminder of the week.
Andrews said the weather pattern around Greenland is responsible for the cold burst, encompassing a massive portion of the United States. It will also continue to affect Europe.
As for gasoline prices, when global oil prices are rising, gas prices are expected to climb as well.
Yankton saw some evidence of that over the New Year’s weekend, with pump prices at some locations rising a dime or more.
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| A MAD SCRAMBLE |
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bobby77 wrote on Jan 4, 2010 9:22 AM: